Skip to content

CA Final · Indirect Tax Laws · Appeals and Revision (GST)

A demand notice was served on Rohan Enterprises and recovery proceedings started. In its appeal, the demand of Rs 12 lakh is reduced to Rs 8 lakh. Under section 84 of the CGST Act, which is correct?

No fresh notice is needed. The Commissioner intimates the reduction to the person and to the authority handling recovery, and recovery proceedings continue for the reduced Rs 8 lakh from the stage they had reached before the appeal was disposed of, as section 84 provides.

  1. AA fresh notice of demand for Rs 8 lakh must be served and recovery restarted
  2. BRecovery proceedings already initiated are dropped and cannot continue
  3. CThe Commissioner must intimate the reduction to the person and the authority where recovery is pending, and recovery may continue for the reduced amount from the stage reached, without a fresh noticeCorrect
  4. DRecovery continues for the original Rs 12 lakh until the appeal order is communicated and then lapses

Explanation

Section 84(b) says that where dues are reduced, no fresh notice of demand is needed. The Commissioner gives intimation of the reduction to the person and to the appropriate authority with whom recovery is pending. Recovery may continue for the reduced amount from the stage at which it stood before disposal. Restarting recovery or dropping it is not provided.

Did you get it right without looking?

One question tells you little. A timed set on Appeals and Revision (GST) shows your real accuracy, how long you take and where you lose marks.

Practise Appeals and Revision (GST)Free diagnostic mock

More Appeals and Revision (GST) questions